The Power of eMarketing Conference Todd Daum Vice President, Marketing September 5, 2002
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Transcript of The Power of eMarketing Conference Todd Daum Vice President, Marketing September 5, 2002
Agenda
The Power of Search
Succeeding with Search and your Available Options
Managing Paid Placement Campaigns
Paid Placement Case Study and Conversion Tips
Q & A
Search is Powerful Marketing
60-70 Million “commercially-oriented” searches each day in the U.S.
Customers report the majority of their online purchases are from sites they found through search results.
Customers pre-qualify themselves by actively searching for products/services.
Pre-qualified leads result in higher conversion rates.
Source: Overture Estimates and NPD Branding Study (February 2001)
Lev
el o
f Ta
rget
ing
User’s Participation
Search allows for active user participation and a high level of targeting.
High
Low
ActivePassive
Catalog MailTrade MagazinesOpt-in E-mailDirect Mail
Network TVRadioBillboards
Internet Search
The Power of Search: Unique Value
Usage
Leads Generated
Market Size
Years in Existence
Yellow Pages Direct Mail Search
25-35 million phone calls/day
10.7 million pieces read/day
30-40 millionreferences/day
180-200 million searches/day
1.7 million responses/day
90-100 million leads/day
$12 Billion $44 Billion $1 Billion
The Power of Search: Untapped Potential
95 Years 96 Years 4 Years
Source: YPPA, DMA and Overture Estimates
Search delivers volumes of leads to the most popular commerce industries on the Web.
Monthly traffic in major search engine categories (in millions).
Source: Overture home page and affiliate partner statistics, July 2002
The Power of Search: Volume and Diversity
108.5
84.4
73.5
73.4
71.4
44.6
38.3
31.4
28.6
28.0
0.0 20.0 40.0 60.0 80.0 100.0 120.0
Mass Merchants
IT & Computing
Health & Beauty
Professional Services
Travel
Books/Movies/Music
Financial Services
Automotive
Home & Garden
Toys, Hobbies & Collectibles
The Power of Search: User’s Preferred Method
When searching for products online to buy, what is the most common way you find online vendors or stores?
15%
2%
4%
4%
5%
5%
23%
42%Search Engine – product, brand or store name
Straight to store – type in URL
Search Engine – use shopping channel
Email from store or company
Click on Internet Ads
Use a shopping bot
Site with suggestions/reviews of web stores
Other
Source: Jupiter Media Metrix “Paid Search Placement” Report, July 2001
Succeeding With Search
1. Appear on major search engines The top 10 sites all of which have search engines reach over 90% of all active Internet users.
2. Get listed at the top of the search results Research shows that the top 3 search listings receive over 70% of all clicks.
3. Find the most time effective submission option Appearing in multiple search engines ensures maximum reach but can be a time-consuming process.
4. Control costs Controlling the cost per lead allows businesses to achieve ROI objectives.
Search Engine Submission Options
1. Search Engine Marketers (SEMs)Business hires a “specialist” to get their site listed with multiple search engines, including algorithmic.
3. Paid PlacementBusiness submits site to one search engine which distributes its results to other sites.
2. Paid Inclusion Business pay search engine directly to be included in their results
or reviewed by Webcrawler more frequently.
Search EngineMarketers
Appearing onMajor Search Engines
Results may appear in selected search engine
Results may appear in selected search engine
PaidPlacement
Results listed across a network of search sites
Paid Inclusion
Appearing on Major Search Engines
Search EngineMarketers
Appearing onMajor Search Engines
Getting Listed at the Top
Results may appear in selected search engine
Results may appear in selected search engine
No control
Complete control over position
No control
PaidPlacement
Results listed across a network of search sites
Paid Inclusion
Getting Listed at the Top
Search EngineMarketers
Appearing onMajor Search Engines
Getting Listed at the Top
TimeEffective
Submission
Results may appear in selected search engine
Results may appear in selected search engine
No control
Complete control over position
No controlMultiple distribution achieved with one buy
Multiple distribution achieved with one buy
PaidPlacement
Results listed across a network of search sites
Can be time intensive
Paid Inclusion
Time Effective Submission
Controlling Costs
Search EngineMarketers
Appearing onMajor Search Engines
Getting Listed at the Top
TimeEffective
Submission
ControllingCosts
Results may appear in selected search engine
Results may appear in selected search engine
No control
Complete control over position
No controlMultiple distribution achieved with one buy
Multiple distribution achieved with one buy
Cost based on inclusion, not performance
Recurring costs based on inclusion, not performance
Cost based on performance (cost per click)
PaidPlacement
Results listed across a network of search sites
Can be time intensive
Paid Inclusion
SEM/Algorithmic Search Example
3. Listings mayAppear within other search results
3. Listings mayAppear within other search results
1. Search engine positions listings according to an algorithmic formula.
2. SEMs attempt to improve ranking of results
Paid Inclusion Example
1. Business sets up account, submits listings and pays inclusion fee.
2. Listings may appear within other search results
Paid Placement Example
2. Overture’s 100+ editors screen for relevance.
3. User submits a search query.
4. Listings dynamically ordered by level of bid.
6. User clicks, advertiser pays for qualified lead.
1. Advertisers set up account & submits listings: Keywords, titles, descriptions & bids.
5. Listings distributed across network of search sites.
Pay-for-Performance Search = Positive ROI
Source: Jupiter Online Advertising Effectiveness Study 9/01
12%
16%
23%
24%
29%
0% 5% 10% 15% 20% 25% 30%
CPM Banners
CPC Banners
Paid InclusionProduct
Opt-in E-mail
Pay for PlacementSearch Engines
PFP Search ROI rated higher than other online Ad Tools
What do you think is the return on investment for each of the online advertising mediums that were used last quarter?
Case Study: eBags
Select relevant keywords
Write clear, factual titles and descriptions
Determine listing position
Track your results
Managing Paid Placement Campaigns
Case Study: eBags
Company Background and Situation
eBags is a leading online provider of bags, accessories and travel-related products
Has thousands of listings
Wanted to understand its conversion rate and ROI to optimize their account
Keywords, Titles and Descriptions
Choose relevant search terms
• Backpacks
• Handbags
• Samsonite luggage
1.
eBags brings you a large selection of backpacks to make shopping online easy and enjoyable. Great discounts, consumer reviews and always 100% satisfaction.
www.ebags.com
Write clear, factual titles and descriptions
Find Great Backpacks at eBags.com
• Include the keyword in both your title and description.• Direct URLs to pages with keyword related content.
Result:• Consumers find precisely what they’re looking for.• Increased sales conversion rates.
Determine Listing Position
Search Listing
$0.50
Bid Amount Your Position
1. $0.50
2. $0.46
3. $0.40
4. $0.37(Advertisers Max Bid: $0.50)
1.eBags brings you a large selection of backpacks to make shopping online easy and enjoyable. Great discounts, consumer reviews and always 100% satisfaction.
www.ebags.com
Find Great Backpacks at eBags.com
• Bid amounts should be set to maximize your return on investment. (Dependent upon the conversion rate and your profitability.)
• Overture’s Premium Listings (top 3 positions) reach more than 80% of active U.S. Internet users.
1
• Branding: 33% of consumers believed seeing a company within the opening lines of search results made them a top company in its field.
2
1. Nielsen/NetRatings, July 2002 2. iProspect user survey, July 30, 2002
Determine Listing Position
Search Listing Max Bid Cost
1. $0.50
2. $0.46
3. $0.40
4. $0.37(Advertisers Max Bid: $0.50)
1.eBags brings you a large selection of backpacks to make shopping online easy and enjoyable. Great discounts, consumer reviews and always 100% satisfaction.
www.ebags.com
Find Great Backpacks at eBags.com
• Listing position is determined by advertiser’s Max Bid.
• Auto-bidding ensures the advertiser only pays $0.01 above the next advertiser’s Max Bid, “bubble-popping” any gaps in the bid pricing.
• Simplifies campaign management, allowing advertisers to concentrate on their core business rather than their marketing efforts.
“Auto-Bidding”
$0.47
$0.41
$0.05
$0.38
Understanding how to track your visitors is the key to optimizing your paid placement search results.
Track your Results
Following the traffic through the steps that lead to a sale will enable you to:
• Track conversion by keyword.• Effectively manage your most important keywords.• Set your bids to maximize your return on investment.• Maximize your sales.
Result:• The most cost-effective way to spend your marketing budget.
Find Great Backpacks at eBags.com
eBags brings you a large selection of backpacks to make shopping online easy and enjoyable. Great discounts, consumer reviews and always 100% satisfaction.
Backpacks
Add tracking URL here
www.ebags.com/backpacks
$0.50
?source=overture&kw=backpacks
Track your Results
Case Study: eBags
Added tracking URLs, tracked visitors and sales
What they did Result
Allowed them to understand the number of visitors and the source of its sales
Determined their ROI Allowed them to understand the effectiveness of its Overture keywords
Optimized their account• Added additional relevant terms• Wrote clear titles and descriptions• Moved some terms into Premium
Listings• Optimized bids
Tripled its traffic Increased its conversion rate by
nearly 10% Increased overall profits Maximized its ROI
Paid Placement Conversion Tips
1. Select “portfolio” of relevant product/service keywords – general to specific.
2. Use clear and factual titles/descriptions, including keywords in both areas.
3. Send the user directly to the specific product/service page.
4. Use tracking URLs at the keyword level to determine the “best” performing terms and optimize campaign accordingly.
5. Position your search listings as high as your cost structure allows (i.e., gain maximum exposure, while maximizing your ROI).
6. Develop new terms around your best searched terms.